Binance paused withdrawals on multiple networks after reported wallet drains. Tether and Circle froze about $2.4B, but the full loss is still unconfirmed.
Binance, the world's largest crypto exchange, paused withdrawals on multiple networks on Thursday, Oct. 29, 2026, after reports that funds were being drained from its wallets. Binance's founder said it looks like a hack. The exchange itself says it is investigating a "potential security issue" and that user funds are safe, according to TechCrunch.
What we know so far
The alarm started on-chain. Researchers flagged large transfers out of Binance-linked Ethereum wallets to a newly created address, and Changpeng Zhao, Binance's founder, wrote on X at around 5:15 p.m. ET that "it does look like a hack."
A Binance spokesperson, Ross O'Leary, told TechCrunch the exchange has "temporarily suspended withdrawals on multiple networks following a security incident as a precautionary measure."
The numbers, and which ones are solid
The figures vary a lot, and none are confirmed by Binance. TechCrunch says crypto watchers see at least $2 billion drained from hot wallets, the internet-connected wallets exchanges use for payouts. Some estimates run as high as $5.7 billion. The Block cites blockchain security firm Blockaid, which put suspicious outflows at about $3.3 billion across Ethereum, Arbitrum and Avalanche.
The firmest data point is the freeze. Circle said it froze more than $800 million in USDC in coordination with law enforcement, and Tether's CEO said the company froze more than $1.56 billion in USDT. The Block also reports that BNB, Binance's token, was down more than 5.5% at the time of its report.
What is not confirmed yet
Nobody has said who is behind this or how the attacker got in. Binance has not published a loss figure or a date for restoring withdrawals. Zhao said he expects user funds to be "fully covered," but gave no explanation. The reports we read also don't say whether U.S. customers or Binance's U.S. affiliate are affected. This is a developing story, and we will update it if Binance publishes verified details.
Why it matters for U.S. readers
If the larger estimates hold, TechCrunch notes this would rank among the largest crypto breaches ever. For comparison, it points to the record $1.4 billion Bybit theft in 2025. Binance itself warned users to ignore unofficial links and messages.
Our take: The quick stablecoin freezes are the part worth watching. They show that issuers can lock stolen dollars within hours, which limits what a thief can cash out. They also raise the old question of who gets to make that call. Until Binance publishes a loss figure, treat every number above as an estimate.
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Picture credit: Logo: Binance (public domain). Design: Savvy VibeZ
